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From what I’ve seen they create value for the owners via consolidation so prices can be driven up for everyone else. They aren’t geniuses. They simply have en
by donmcronald 1y ago
From what I’ve seen they create value for the owners via consolidation so prices can be driven up for everyone else. They aren’t geniuses. They simply have enough capital to manipulate the supply side of the market.
- gruez 1y agoMaybe that's what's most visible, but at least in theory consolidation can create value by centralizing back office/G&A operations, bringing in a development team to automate stuff (which is harder to do when the market is fragmented and everyone is trying to do their own thing), and better management (vaguely defined).
- spwa4 1y agoExactly. Ideally they create the difference between a McDonalds and a random private non-themed eatery/restaurant. They create consistency, and actually have a company behind it. Now you can say "there's no value there", but I'm guessing your kids strongly disagree in the McDonalds case ...